‘We are all-in mining’: FLS CEO
- 22 June 2025
An exciting new era for Denmark’s FLSmidth is underway with the sale of its legacy cement business to a US private equity firm.
FLSmidth, which is rebranding as FLS, will become a “pure-play” mining equipment and technology supplier before the end of 2025 after confirming divestment of its 140-year-old cement business to US-based Pacific Avenue Capital Partners in a deal worth up to €150 million.
The sale would allow FLS to “sharpen our focus on our core mining business”, according to CEO, Mikko Keto. “With a clear and focused mining strategy we are confident that we are well positioned to drive long-term value for our customers, shareholders and other stakeholders and enhance our competitive position,” he said.
FLS flagged new pure-play strategies for its mining and cement businesses in early 2023, following on from its acquisition of the thyssenkrupp Mining business the previous year.
News of the disposal of its cement arm follows FLS’s recently announced sale of its historic Valby head office building in Copenhagen for €98 million. The circa-€2 billion-a-year mining business is expected to maintain high margins and strong free cash generation, FLS CFO Roland Andersen said on a call with analysts.
Mikko Keto said the company was now ready to become more engaged with a well-developed mining merger and acquisition deal funnel.
“After selling of the head office we are in all practical terms a debt-free company so we can actually invest into growth and [complete] a share buy-back program at the same time because of our financial health,” he said.
“Management has been a bit preoccupied [with the sale].
“That’s why we are very excited by this milestone because now we are 100% focused on mining and we can pursue the bolt-ons [and] bigger acquisitions with new vigour. We do have a funnel that we are looking at and we can become much more active with the funnel [and] engaging with the targets and so on.
“If we need funding for major acquisitions we are confident we can do it.
“We are all-in in mining.”
FLS can also focus on refining its technological edge in mining.
Its primary mining-related activities are built around crushing, grinding, mineral concentration, refining and solid and liquid material movement equipment, plus a large aftermarket business.
“Reducing mining’s energy intensity is crucial to maintaining an economical and dependable minerals supply,” the company has said.
“It’s why zero energy waste and zero emissions are two of the three pillars of the FLS MissionZero Mine vision for the future of mining. The good news is that plenty of opportunities exist to improve energy efficiency along the mining and mineral processing flowsheet.”
FLS is a Platinum Sponsor of IMARC 2025 in Sydney, October 21-23.
